Laos: At least 20,000 garment workers expected to be impacted by 40% US tariffs
"Laos industry at risk as US imposes 40% tariffs", 31 August 2025
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Although Laos exports relatively little, a small number of factories...supply the American market, accounting for roughly 3% to 6% of the country’s GDP.
However, Laos’ supply chains are closely tied to China...According to data from last year, the US has a trade deficit of over $760 million with Laos, prompting Washington to threaten one of the highest tariff surcharges announced by the Trump administration.
“We estimate that around 20,000 workers or more will be affected,” said Xaybandith Rasphone, president of the Lao Garment Industry Association.
“We're not sure of the exact number yet, but it could easily be higher if companies close down,” added Rasphone, who also serves as vice president of the National Chamber of Commerce and Industry.
Rasphone said that if US customers pull back, 35 to 40 factories may face disruption...
Laos is a regional base for garment manufacturing, supplying many Western brands, including Dr. Martens....
In Vientiane, a local saleswoman who declined to be named said she was “living from day to day.”...
Production of mattresses, silicone products, and solar panels could also be affected by the tariffs...
Although the European Union—especially Germany—has been the main destination for Laotian textiles, the US has long been among the top five export markets.
...the garment industry employs nearly 30,000 workers and represents around 13% of export earnings, excluding natural resources...